With sales in its home business division falling 9.6%, to $3.0 million, in the second quarter ended August 31, total revenue at Educational Development Corp. fell 4.2%, to $5.7 million and earnings dipped to $190,200 from $225,400 in the comparable quarter in fiscal 2010. The drop in sales in the home unit was attributed to declines in home party, direct, and online sales. Sales in the publishing group rose 2.5%, to $2.7 million, led by higher sales to smaller retail stores.
With the home business unit having been hurt more by the struggling economy than the retail side, EDC said it is increasing incentives to its field sales force to boost results. Through the first six months of the current fiscal year, sales in the publishing group were up 4%, while the home business unit had as 6.8% decline. Overall, sales for the first half of fiscal 2011 declined 3.2%, to $12 million, and net income fell to $378,400 from $640,800.
